The consumer durables industry witnessed a strong sales uptick for washing machines, air-conditioners and LED TVs during the Onam festival period. Some of the leading brands said they witnessed strong double-digit growth during this period led by higher demand for the premium segment, making them bullish about the upcoming festivities that end with Diwali. Industry growth rate, which was flat last year, is also expected to be around 15-20 per cent in terms of value.
With Onam kickstarting the key sales season for consumer products, many consider it to be a bellwether for consumer buying sentiment for the overall festival period.
Kamal Nandi, Business Head & Executive Vice-President, Godrej Appliances, said, “Overall, the Onam period has been better for the industry than last year. For us, it has been very good as we have been seeing strong traction in categories of washing machines and air-conditioners. We should get a growth of about 40 per cent in these categories. Higher demand for premium segment is leading this growth. This augurs well in terms of consumer sentiment for the upcoming festival period.” He added that the refrigerators segment has not seen a huge spike but the category growth has been stable and has not degrown.
”Last year, overall industry growth was flat with a bit of degrowth during the festival season. But this year, there is definitely growth led by premium products,” he added.
Upgrade to premium products
Players said consumers have been seen upgrading to premium products such as large-sized flat panel televisions, front-load washing machines and higher capacity top-load washing machines, among others.
NS Satish, President, Haier Appliances India, said, “We have grown over 35 per cent during the Onam period. Our LED TV business has done extremely well. We are also seeing strong traction for the washing machines business. Refrigerators segment has also done well but not as well as per expectations. We are also seeing good traction for new-age appliances such as air-fryers.”
He added that buying sentiment during Onam is sort of a reflection of what’s in store for the upcoming festival season. “We believe that premium consumer products will continue to lead the growth for the sector. There will be higher demand for products that are high on features and latest technology in the coming days,
According to estimates released by GfK in August, the major domestic appliances segment garnered 18 per cent value growth in the first half of 2024. The research firm noted that consumers are prioritising advanced technology and superior functionality in their purchases.